At some point, almost everyone needs a loan according to their requirement, purpose, and immediacy. Most individuals with a critical financial condition find an online loan app the most dependable funding source. By downloading a simple app on your mobile phone, you can apply for a Personal Loan in minutes and get disbursal directly into your bank account.
Whether you need funds for a medical emergency, wedding, education, vacation, or home renovation, a loan app is the fastest way to get the required funding. However, the deal you get on a Personal Loan app depends on your creditworthiness and repayment capacity. Here are a few ways to get an Instant Personal Loan in India from the comfort of your home.
Select the Right Loan App
Selecting a reliable and authentic loan app is the first and most important step to applying for a Personal Loan. You cannot trust any other app you come across first on the Google Play Store or Apple Store. The market is full of fancy alluring offers. It would help if you were wary of scammers and only applied for a loan with an authentic and authorised loan app.
To ensure an app’s authenticity, check out its customer reviews, number of downloads, star rating, etc. Ensure that the app has a valid phone number, email address, and physical address and that customer care actually works. Selecting the right loan app is the most crucial step in getting the best loan offer suitable to your needs.
Maintain a High Credit Rating
Another golden rule to get the best loan is maintaining a high credit rating. It is a 3-digit number indicating your repayment habits and creditworthiness. You must check your credit score at a reliable credit score-checking platform before applying for a loan. The higher the credit rating, the better the loan amount and interest rate you can grab.
Your credit score largely depends on your past credit behaviour, including repayment history, credit utilisation rate, debt-to-income ratio, outstanding balances, loan defaults, etc. Follow these tips to build and maintain a high credit rating and get qualified for the best loan deal:
- Always pay your loan EMIs and credit card bills on time
- Retain old accounts to lengthen your credit history
- Diversify your credit profile with different types of credit accounts
- Maintain a low DTI and CUR to prove a high repayment capacity
- Avoid multiple loan applications to avoid showing a credit-hungry behaviour
Compare Interest Rates at Various Loan Apps
The interest rate is one of the most important factors to consider while finalising a loan plan. During the loan tenure, the interest rate on your Personal Loan will largely affect your EMIs and total loan cost. Choosing the lowest interest rate is imperative to getting the best loan deal.
While looking for an online loan app, compare interest rates from various loan providers and opt for one with the lowest rate offer. Maintaining a high credit score, reducing the DTI ratio, and showing a high income and repayment capacity are ideal ways to convince lenders of timely repayment. It eventually causes them to charge lower interest on your Personal Loan application, helping you save money and making repayment easier.
Opt for an Appropriate Loan Tenure
While looking for the best Personal Loan plan, opting for the longest possible tenure and repaying the loan in small EMIs each month is alluring. However, the reality is exactly the opposite. When you select a long loan term, the lending institution must keep its money stuck with you for a long. It poses a higher risk for the lender, convincing them to charge you a higher interest rate to cover the risk.
So, it is wiser to pick the smallest possible loan tenure with budget-friendly EMIs. The shorter the loan tenure, the bigger the EMIs. Therefore, choosing a short term does not mean making EMI repayments difficult to manage. A Personal Loan EMI calculator will calculate the EMIs for various loan terms, based on which you can opt for tenure with EMIs according to your affordability.
Reduce Your Financial Obligations
The financial obligations you are currently handling largely affect your loan deals. Even if you have a high income, you may not have sufficient disposable income if you are already committed to other obligations like EMIs, credit lines, insurance premiums, house rent, utilities, etc.
Borrowing money judiciously and paying off outstanding balances will reduce your DTI ratio. As a result, lenders will see a higher repayment capacity and feel confident about timely repayment. Finally, they can offer you the best Personal Loan in India with a higher loan amount and lower interest rates.
Show High Income
When you apply for a Personal Loan, the lending institution would want to see your earnings to assess your repayment capacity. The more you earn, the more easily you can repay your EMIs. Therefore, besides your regular income from your job or profession, declare other income sources in your loan application. These include your income from rent, investments, insurance, part-time jobs, freelance work, etc. The more your income, the higher your chances of getting the best Personal Loan offer.
Give Attention to Your Employment and Earnings
Your employment and earnings also play a major role in determining your loan deal. Lending institutions want to ensure stable employment with high earnings at a reputable organisation. If you fulfil these conditions, they offer you a better loan plan with the lowest interest rate. They also pay attention to your work experience; the more experienced you are, your financial stability will improve. Avoid changing jobs before applying for a loan to get the best deal.
An online loan app makes the application process extremely simple and fast. However, take care of a few things and use the above tips to get the best deal with the lowest interest rates and easy repayment terms. Apart from these, give attention to the lender’s customer service to get professional help when needed.